It’s Dot-com bubble 2.0

I was looking at my oil and REIT heavy portfolio missing growth while stock market rised to unseen heights. I started to wonder where did I went wrong. Everyone is hitting the ceilings and im remaining at the bottom.

Then I started to investigate what was the main drivers for this stock market rally. In general it was major Tech companies: Apple +156%, Microsoft +64%, Google +39% and Facebook +59% YTD and we are only 8 months into 2020.

Their P/E ratios is even crazier Apple 41x, Microsoft 39x, Google 36x and Facebook 36x. Funny thing is that Google and FB is less overvalued then Apple and Microsoft who are bit more matured companies with paid dividends ect. APPL and MSFT dividend yields had droped below 1%. This is not normal. The whole world is betting on tech companies that we will all live only in our smartphones and PC due to covid. I don’t know this is super familier with stuff that was going on precicly 20 years ago – IT hype. Everyone is going digital.

I think with P/E of around 40x these top tech companies are clearly overevaluated and we will see dot-com 2.0. bubble bursting yet again some time soon. Looks like fed and stimulus money went most to these Hype tech companies. Did they grow their sales or EPS two time? No. In the close future? I don’t think so as well.

Billion dollar qestion – is this the peak? I think in some more month as everyone is rushing to buy their shares of Apple of Microsoft to have their +100% return in 2021. I’m not even talking about stock like Tesla. And everyone thinks they will outsmart one another.

Either way Im staying with my boring dividend portfolio 🙂


  1. I’m still in on XLNX since 118 and came very close to selling and switching to APPL today. I’m a bit hesitant for the same reason. I’m a bit late on the “split fever“ that has occurred. Besides, should there be a POP then even XLNX will hurt. But then again, I could wait for 118 or above and sell to finally switch to something else, sell now and switch right away, sell now and split the money into a few companies instead of just the one (XLNX is just one of many larger positions I’ve held for months), or sell now and wait this out. It makes you wonder, eh? What’s currently going on isn’t normal. Heh, I even thought Microsoft at 60 was too much back then.


    • I dont knos looks overpriced. 40x P/E for company with flat sales and earnings. I would go for INTC instead of XLNX 🙂


      • I kind of wish I sold at 104. I came close to doing that. Why Intel?

        I do have AMD at 29.25 since Sept 2019. Heh. Been holding it so long I kind of don’t want to get rid of it. It was up 215% total at one point within the last week.


    • Jeee did the same. Funny thing is that I repurchased INTC for slightly lower price. Excl operation fee and tax for capital gain I say I went even 🙂


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